BOROSIL RENEWABLES LIMITED — Investor Meet, 17-11-2024: Analysts/Institutional Investor Meet/Con. Call Updates

**1. Financial Performance:** Borosil Renewables reported total sales of INR 264.94 crore for Q2 FY '25, a notable increase from INR 241.40 crore in the previous quarter. The company achieved an EBITDA of INR 52.88 crore, translating to a 20% margin, up from 12.3% in Q1. After-tax profit surged to INR 12.62 crore, a striking recovery from a loss of INR 3.64 crore in the earlier quarter. Export sales grew significantly to INR 34.39 crore, contributing 13% to total turnover compared to 9.3% in the prior period.

**2. Future Outlook and Growth Drivers:** Management emphasized plans to bolster domestic solar glass production, positioning themselves favorably amidst rising solar module demand as local manufacturing expands. The company is optimistic that the imposition of provisional antidumping duties will stabilize market conditions and enhance profitability.

**3. Order Book and Operational Updates:** The company is experiencing increased operational efficiencies, although challenges persist from surging imports due to stockpiling ahead of duty impositions. Current inventory levels at customer end are restricting new orders.

**4. Analyst Q&A Insights (Detailed):**

- **Revenue and Profitability:** Analysts probed the sustainability of profit margins with current pricing pressures. Management noted effective customer relations have helped maintain moderate price levels despite competition.

- **Market Position and Competitive Landscape:** No changes in the 65% market share in Germany were observed, but overall demand has diminished significantly.

- **Operational Challenges:** The German operations are struggling with reduced demand and higher operational costs compared to India. Management plans to explore alternatives if low utilization persists.

- **Capex and Capital Allocation:** Future capital expenditure will depend on resolution of antidumping duties, expected to take approximately 18 months for new capacity to come online. The current rights issue aims to address debt obligations.

- **Strategic Priorities and Long-Term Vision:** Management highlighted the strategic push for local solar component production to foster a robust supply chain.

**5. Market or Regulatory Updates:** The ongoing antidumping investigation is critical for Borosil, with preliminary findings recommending the imposition of duties expected to enhance competitive positioning against imports.

**6. Strategic Focus Areas:** The call emphasized a strong focus on managing production costs, maintaining operational efficiency, and expanding capacity through potential capex once market conditions stabilize.

**7. Investor Insight:** Borosil’s current financial trajectory and strategic initiatives suggest a favorable position for growth as market conditions improve. The anticipated antidumping duty's impact is poised to foster a positive outlook. This paints a supportive case for a potential 'buy' stance, contingent upon monitoring market recovery trends and the progress of duty implementations.